U.S. credit card delinquency rates are nearing a six-year low, according to latest Credit Card Index results from Fitch Ratings.
"U.S. consumer credit quality has improved rapidly since the beginning of the year and delinquency trends bode well for further gains,’ Managing Director Michael Dean said. "We’re at a point now, however, where seasonal factors will likely temper the pace of further collateral improvements for credit card ABS."
Delinquency rates registered its 19th straight month of decline with 60+ day delinquencies shedding another 31 basis points to settle at 2.15%.
The ongoing rapid improvement has pushed the delinquency index 52% below peak levels of 4.50%, which was reached just 18 months ago, according to the Fitch index.